Birchcliff Energy Ltd.
TSX : BIR

Birchcliff Energy Ltd.

March 14, 2008 09:05 ET

Birchcliff Energy Ltd. Announces the Closing of Its $130 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - March 14, 2008) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Birchcliff Energy Ltd. ("Birchcliff" or the "Company") (TSX:BIR) is pleased to announce that it has completed a bought deal equity financing with a syndicate of underwriters led by GMP Securities L.P. and Scotia Capital Inc. and including Cormark Securities Inc., HSBC Securities (Canada) Inc. Canaccord Capital Corporation, Raymond James Ltd. and RBC Capital Markets (collectively, the "Underwriters"), pursuant to which the Underwriters purchased for resale to the public 12,500,000 common shares (the "Common Shares") at a price of $8.00 per Common Share and 1,522,843 common shares to be issued on a " flow - through" basis (the "Flow -Through Shares") at a price of $9.85 per Flow - Through Share for aggregate gross proceeds of $115,000,000 (the "Offering"). In addition, the Underwriters exercised an over-allotment option to purchase 1,875,000 additional Common Shares at a price of $8.00 per Common Share for further gross proceeds of $15,000,000, which increased the gross proceeds from the Offering to $130 Million.

The proceeds from the Offering will be used to repay Birchcliff's $100,000,000 Bridge Credit Facility, to temporarily reduce indebtedness under it's other credit facilities and thereafter redrawn to fund Birchcliff's drilling programs and for general corporate purposes.

Birchcliff Energy Ltd. now has 111,783,424 common shares outstanding.

FORWARD LOOKING STATEMENTS

Certain information set forth in this press release contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond Birchcliff's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the competition for qualified personnel and management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect and, as such, undue reliance should not be placed on forward-looking statements. Birchcliff's actual results, performance or achievement could differ materially from those expressed in or implied by these forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits will derive therefrom. Except as required by law, Birchcliff disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Birchcliff is a publicly traded company that trades on the TSX Exchange under the symbol "BIR".

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. Securities may not be offered or sold in the United States absent registration in the United States or the availability of an exemption from such registration.

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Birchcliff Energy Ltd.
    Jeff Tonken
    President and Chief Executive Officer
    (403) 261-6401
    (403) 261-6424 (FAX)
    or
    Birchcliff Energy Ltd.
    Bruno Geremia
    Vice President and Chief Financial Officer
    (403) 261-6401
    (403) 261-6424 (FAX)
    or
    Birchcliff Energy Ltd.
    Jim Surbey
    Vice President, Corporate Development
    (403) 261-6401
    (403) 261-6424 (FAX)